Maritime Efficiency Key to Meeting IMO Targets: MERC
The Maritime Emissions Reduction Centre (MERC) has released a new publication emphasizing the critical role of fleet efficiency in achieving the International Maritime Organization’s (IMO) Mid-Term Greenhouse Gas (GHG) reduction targets. The report highlights the need for existing ships to become more efficient to meet these targets and outlines the potential impact of IMO regulations, including GHG pricing, on incentivizing efficiency investments.
Challenges and Opportunities in Fleet Efficiency
The MERC publication, titled “IMO Mid-Term GHG Reduction Measures as a Driver for Efficiency,” delves into the challenges and opportunities presented by the IMO’s mid-term measures. These measures, expected to be approved in April 2025 and come into force in 2027, include an economic element such as a GHG pricing mechanism and a goal-based fuel standard regulating the phased reduction of marine fuel’s GHG intensity. However, most new low-carbon fuels are not suitable for existing vessels, and the maritime industry will compete with other sectors for suitable drop-in fuels. Therefore, improving efficiency in the existing fleet is critical to reducing GHG emissions while continuing to support global trade.
The introduction of economic elements, such as GHG pricing, will incentivize investments in technologies that reduce both energy use and emissions, driving improvements in shipping efficiency. Stelios Korkodilos, Director of the MERC, emphasized the importance of efficiency improvements for the existing fleet, stating that while alternative fuels will play a vital role in shipping’s decarbonization journey, efficiency improvements will be critical for the existing fleet. MERC aims to work with all industry stakeholders to overcome the technical, financial, and commercial barriers that hinder the uptake of solutions for the existing fleet and support shipping’s transition to a low-GHG future.
This is the first publication from the Athens-based MERC, a non-profit organization created by Lloyd Register’s Maritime Decarbonisation Hub in collaboration with five leading Greek shipowners. MERC was founded to fill a gap in the maritime industry’s approach to decarbonization. While there are numerous initiatives focused on the future of maritime energy, particularly in the development of alternative fuels, there is a need for a dedicated effort to address the immediate challenges faced by the existing fleet, using conventional fuels, and support it to reduce GHG emissions. MERC will use its applied research and innovation to remove uncertainties and barriers, enabling the uptake of technologies and solutions today.
